Fed Easing Liquidity in Funding Markets

[peterb]

Take a look at Mr. Toscano’s article titled,”What’s in store for 2008″. Located in the upper right-hand frame of this web sites home page. I have to agree with him. Monetary policy in the US has been to lower rates in times of economic slow down. Inflation takes a big back seat to economic growth. Greenspan brought the rate down to about 1% during the 2002 recession. The recession of 2002 is going to look like a picnic at the lake compared to what’s coming this year! You dont think the Fed’s going to lower rates again and again this year as the bad news keeps coming in? Hard assets that are in global demand will probably be the only things that rise in price.

[DaCounselor]

Certainly there are problems with both liquidity AND solvency – not just one or the other. In fact, can there be much doubt that we are headed into a cul-de-sac where a liquidity trap awaits?

I may be wrong but I just can’t imagine that the Fed will fail to continue to offer additional hundreds of billions of dollars more in loans – against mostly junk collateral – moving forward. And what will be the total of worldwide offerings when all is said and done? Several trillion, I would guess.

As for the FFR, I just don’t believe the Fed is even thinking of doing a 180 and tightening right now. I think they are going to take it down to 2.0 and maybe lower before they are done easing, and we are looking at a very low FFR for the next several years.

[DaCounselor]

Certainly there are problems with both liquidity AND solvency – not just one or the other. In fact, can there be much doubt that we are headed into a cul-de-sac where a liquidity trap awaits?

I may be wrong but I just can’t imagine that the Fed will fail to continue to offer additional hundreds of billions of dollars more in loans – against mostly junk collateral – moving forward. And what will be the total of worldwide offerings when all is said and done? Several trillion, I would guess.

As for the FFR, I just don’t believe the Fed is even thinking of doing a 180 and tightening right now. I think they are going to take it down to 2.0 and maybe lower before they are done easing, and we are looking at a very low FFR for the next several years.

[DaCounselor]

Certainly there are problems with both liquidity AND solvency – not just one or the other. In fact, can there be much doubt that we are headed into a cul-de-sac where a liquidity trap awaits?

I may be wrong but I just can’t imagine that the Fed will fail to continue to offer additional hundreds of billions of dollars more in loans – against mostly junk collateral – moving forward. And what will be the total of worldwide offerings when all is said and done? Several trillion, I would guess.

As for the FFR, I just don’t believe the Fed is even thinking of doing a 180 and tightening right now. I think they are going to take it down to 2.0 and maybe lower before they are done easing, and we are looking at a very low FFR for the next several years.

[DaCounselor]

Certainly there are problems with both liquidity AND solvency – not just one or the other. In fact, can there be much doubt that we are headed into a cul-de-sac where a liquidity trap awaits?

I may be wrong but I just can’t imagine that the Fed will fail to continue to offer additional hundreds of billions of dollars more in loans – against mostly junk collateral – moving forward. And what will be the total of worldwide offerings when all is said and done? Several trillion, I would guess.

As for the FFR, I just don’t believe the Fed is even thinking of doing a 180 and tightening right now. I think they are going to take it down to 2.0 and maybe lower before they are done easing, and we are looking at a very low FFR for the next several years.

[DaCounselor]

Certainly there are problems with both liquidity AND solvency – not just one or the other. In fact, can there be much doubt that we are headed into a cul-de-sac where a liquidity trap awaits?

I may be wrong but I just can’t imagine that the Fed will fail to continue to offer additional hundreds of billions of dollars more in loans – against mostly junk collateral – moving forward. And what will be the total of worldwide offerings when all is said and done? Several trillion, I would guess.

As for the FFR, I just don’t believe the Fed is even thinking of doing a 180 and tightening right now. I think they are going to take it down to 2.0 and maybe lower before they are done easing, and we are looking at a very low FFR for the next several years.

[donaldduckmoore]

I feel sympathy to the Fed and Ben. What else can he do to fix this mess? Nothing. It was all generated by Greenspan and now Ben has to take care of. What a job.

[donaldduckmoore]

I feel sympathy to the Fed and Ben. What else can he do to fix this mess? Nothing. It was all generated by Greenspan and now Ben has to take care of. What a job.

[donaldduckmoore]

I feel sympathy to the Fed and Ben. What else can he do to fix this mess? Nothing. It was all generated by Greenspan and now Ben has to take care of. What a job.

[donaldduckmoore]

I feel sympathy to the Fed and Ben. What else can he do to fix this mess? Nothing. It was all generated by Greenspan and now Ben has to take care of. What a job.

[donaldduckmoore]

I feel sympathy to the Fed and Ben. What else can he do to fix this mess? Nothing. It was all generated by Greenspan and now Ben has to take care of. What a job.

[Enorah]

It was generated by those whose names we do not know.

[Enorah]

It was generated by those whose names we do not know.

[Enorah]

It was generated by those whose names we do not know.

[Enorah]

It was generated by those whose names we do not know.

[Author]

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